Microsoft Mandates AI Tool Use, Ties to Performance Reviews

Microsoft is making the use of its internal AI tools mandatory for all employees, linking proficiency to performance reviews in a push for AI adoption across the company.
microsoft-mandates-ai-tool-use-ties-to-performance-reviews microsoft-mandates-ai-tool-use-ties-to-performance-reviews

In a bold move signaling its commitment to digital transformation, Microsoft has mandated company-wide adoption of its internal AI tools, making proficiency with these solutions a mandatory aspect of employee performance reviews going forward. An internal memo from Julia Liuson, President of the Developer Division, leaves no ambiguity: “AI is now a fundamental part of how we work… using AI is no longer optional — it’s core to every role and every level.”

Enforcing AI Adoption From Within

The policy change comes amidst concerns over sluggish internal uptake of Microsoft’s AI products, despite significant external promotion and the company’s growing investments in generative AI, machine learning, and workflow automation tools. Managers across Microsoft’s teams are now tasked with evaluating staff engagement with the tech giant’s suite of solutions, including document creation assistants, data analytics platforms, and AI-powered coding tools like GitHub Copilot. Some divisions are even considering formal metrics specifically tied to AI usage to quantify adoption.

Embracing the AI-Powered Workplace

  • Universal employee proficiency is a strategic priority amid rapid workplace automation.
  • Focus remains on Microsoft-developed solutions, with select external platforms permitted.
  • Move aims to bolster the company’s AI initiatives and counter rising competition from AI coding assistants like Cursor.

AI coding assistant interface
Source: Pexels Image

While the AI usage mandate underscores Microsoft’s commitment to digital transformation, the timing coincides with recent reports of potential further layoffs in July 2025, fueling employee concerns over job security as performance bar rises amid rapid automation. As the workplace continues evolving, it’s clear that embracing AI is no longer optional for Microsoft’s workforce, signaling a notable industry shift towards universal AI fluency across roles and skillsets.

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